Having no credit score is like a blank canvas you need to fill in by taking credits, but what should you do when you have a credit score but it is negative. It is tougher to build a good credit score when it is already negative There is nothing to panic though as the realization is the first step towards turning things around. Simple tips can help in slowly improving your score and getting it back to a good positive score.
Review Your Credit Reports:
To improve your credit report, you should know what is in it; hence, pull out a copy of your credit report for free. You should at least check your report once a year to know where do you stand. Once you review your report, you will know where you are and where you want to reach.
Get a Credit Card Issued that he’s with Credit Score:
Several banks offer credit cards, especially for people who wish to increase their credit score. These cards have policies that help improve your credit score quickly. To know more about these credit scores improving credit card and other banking information, visit Online banking Help.
Clear all Debts:
The main reason for a bad credit score is that you have debts and need to clear off the payments. Before you make any further expenditure or get a new credit card, pause it all till you can pay back all the pending debts. This will also save the high interest rate you have been paying for the pending amount.
If you have several outstanding debts you are unable to take care of, consolidate all of them in one and take a debt consolidation loan from a bank. You still have to pay back the loan money, but now you just need to deal with one loan, which will help in improving your credit score. Just make timely payments to not mess up with our scores further.
Avoid Several Hard Inquiries:
If your focus is to improve your credit score, you may want to put a halt to applying for new credits for some time. A hard inquiry happens when a lender checks your current credit to determine if offering you the credit is the right financial decision. This may affect your credit score as lenders could take it as you are at a higher financial risk because you are in need of borrowing money.
How Long Does It Take to Improve Your Credit Score?
Well, your credit score did not become negative overnight; hence, it cannot become positive instantaneously. It will take several months to turn around if you make punctual payments. So, do not be over-enthusiastic as it will take some time before you see any real improvement.
The Bottom Line:
Building a good credit score is not as tough as maintaining it. Remember to timely clear your debts and avoid any late payment fees. You can enable auto-debit of credit card payment directly from your bank account so that you never miss a payment date.